CTC (Cost to Company) is the total amount a company spends on an employee per year, including basic salary, allowances, PF contributions, bonus, and other benefits. Your "in-hand" or take-home salary is what actually gets credited to your bank account after deductions like Employee PF (12% of basic), income tax (TDS), and professional tax. This calculator breaks down your CTC to show exactly what you receive.
Worked Example:
CTC = ₹12,00,000/year | Basic = 50% = ₹6,00,000 | PF = 12% of Basic = ₹72,000/year
Standard Deduction = ₹75,000 | Taxable income ≈ ₹10,53,000 | Tax ≈ ₹53,000
Net in-hand = (12,00,000 − 72,000 − 53,000) ÷ 12 = ₹89,583/month
What is the difference between CTC and gross salary?â–¾
CTC includes the employer's PF contribution (12% of basic) which never reaches your account. Gross salary is what you earn before tax deductions, it excludes employer PF. Your in-hand salary is gross salary minus TDS and professional tax.
Why does my salary slip show less than my CTC?â–¾
Because CTC includes employer costs like employer PF (12% basic), gratuity provision, health insurance, ESIC etc. These are costs the company bears for you but they don't come to you directly. Only your net take-home comes to your bank account.
How much of CTC do I actually take home?â–¾
Typically 60-75% of CTC depending on your salary slab, tax regime, and deductions. A ₹10L CTC employee typically takes home ₹65,000-75,000/month. This calculator gives you the exact number.
Can I negotiate my CTC structure?â–¾
Yes, shifting more to flexible allowances (meal vouchers, fuel reimbursements, LTA) can reduce your tax liability. Also increasing PF (voluntary PF) helps save tax under 80C.